Strengthening the Capacity of Government Apparatus Resources in Supporting Micro Enterprises to “Go Digital” in the Special Region of Yogyakarta

Abstract

This research contributes to the current knowledge on public sector support for and digital transformation of micro-enterprises. The goal of this research is to identify the necessary public-sector or government support measures for microenterprises and to provide policymakers with guidance on how to facilitate a successful digital transformation. To accomplish our goal, we conducted qualitative research with an in-depth interview with Yogyakarta micro-enterprises to collect authentic data. As a result, we were able to obtain responses from the local government as well as six sectors of MEs in Yogyakarta that was affected by the COVID-19 Pandemic Crisis, namely culinary, processed industry, creative industry, agriculture sector, fashion, and event organizer. According to the findings of the study, supporting digital transformation with full government support has a significant impact on enterprise success, income generation, and crisis resilience. In terms of assisting with the implementation of going digital, the Yogyakarta government already has a fairly good apparatus capital readiness, such as creating a marketing platform “Sibakul,” providing business consulting facilities to micro businesses in collaboration with an integrated business service center, which includes facilitating things about online business, and collaborating with relevant stakeholders such as regional apparatus organizations, and universities. However, the government’s capacity to support micro-enterprises in the Yogyakarta area still has flaws, including in terms of quality and quantity that are not yet qualified and insufficient, a lack of budget to support going digital, and government officials’ understanding of the importance of technology. Another factor to consider in the development of digitalization is the presence of research and development (R&D), which is currently lacking in Yogyakarta.